MSFT Internet Explorer vs. NSCP Navigator Message Board

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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Daniel Schuh who wrote (18911)	5/6/1998 12:21:00 AM
From: FJB	Read Replies (2) of 24154

Warren Buffett, however, disagrees. In his recent letter to shareholders, he wrote that after Berkshire Hathaway acquires a company, it will often report higher employee compensation costs. Buffett: "Their reported costs will rise after they are bought by Berkshire if the acquiree has been granting options as part of its compensation packages. In these cases, 'earnings' of the acquiree have been overstated because they have followed the standard-but, in our view, dead wrong-accounting practice of ignoring the cost to a business of issuing options." forbes.com forbes.com

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